 Okay, why? Is that right? Wow. From IBM, is a cloud solution specialist specializing in particular in blockchains and hyperledger, yes? Yes, correct. All right, well, take it away. Right, good afternoon, everyone. So my name is Kai Wain, all right. So today we are going to spend some time on the blockchains part of it. How many of you heard about blockchain, the fundamental stuff? Oh, okay. Wow. So I'm not going to go through the basics, right? But I want to actually share a bit in terms of, I would say, the IBM experience in starting this journey, right? So probably I start with telling a short story, right? Well, how did this journey even started? IBM started with something called Bitcoin as well, for this reason. So we started as a research project, right? So IBM's with a color of blue, so we call it blue coin, right? So we researched it, right? We understand what the technology does. No, Bitcoin is not the technology, right? The technology is called blockchain. And it seems like this technology can deliver kinds of capabilities or functionalities that is needed by enterprise customers, right? So it become a research project, it become a product development. This is where we start to develop, it become a full-skills solutions, right? And this is where we start to get into, I would say, the full force of building this as a business from IBM perspective, right? However, right, what I want to actually go into more details will be the way we actually started into the open-source journey style. Of course, as we know, blockchains, we talk about ledgers, we talk about immutabilities, we talk about finalities of it, right? There are key elements we always mentioned within the blockchain, right? We talk about, yes, they will be distributed ledgers, decentralized. Everyone keep a copy of the same transaction, right, within the network. So which means we are talking about building a network, right? What does it mean from you? What does it mean from our customers or our user perspective? It can be a network of one person. So it needs to be a collective of people within that community, right? Then this is where we start to have to contribute a code into the open-source community itself. But of course, this is where we talk about what to be stored inside the blockchain. This is where we start to talk about the transactions, how we should execute the logic, right? Consistently as a smart contract for all the participants. This is where the code start to develop, become more and more matured, and we started with a project called Open Blockchain Initiative, and eventually we donated code into these communities, right? How many of you heard about hyperledger? Oh, okay, most of you, all right. So the journey started back in almost, I would say the end of 2016, where hyperledger project is formally so-called being established under Lien's Foundation, right? And of course, this is where IBM's, part of the community itself, contribute the source code, right? Contribute our knowledge in terms of setting the directions, how the blockchain can be beneficial to the industries. And this is where the growing of the community start to happen, right? And today, as far as I know, we have more than 250 members, right? From various technology providers, I believe, Microsoft is in the community as well. But we also have a lot of so-called industry players, right? In supply chains, in health care, even in government agencies, who participate and contribute their knowledge into the project itself. Just like any others, I would say an open source community, right? Hyperledgers, of course, in this case, it's not belong to IBM, right? Very important, right? And there are multiple projects under the umbrella of hyperledgers. The one I would say actively being contributed in terms of source codes, knowledge, experience will be something called hyperledger fabric. Hyperledger fabric. How many of you heard about hyperledger fabric? Oh, okay. Much lesser compared than I expected. Hyperledger fabric is one of the, I would say, the projects, right? We call it blockchain operating system to be set up to build the network, right, interconnect the network, right? With the concept of orderers, with the concept of peers, right? Separate into endorsing peers, committing peers, as well with the consensus mechanism built into the orderer with the Kafka technology itself. We have been gradually starting the journey, right? When the so-called community is formed back into December 2016 by introducing version 0.5, version 0.6. Then we started a regular so-called release, right? Working closely with the community. So right now, we are in the stable version of 1.4, right? And it should be end of this month or the end of early next quarter. Then we should be releasing hyperledger fabric 2.0, right? And of course, there are a lot of new exciting features that have been built along the way from private data collections, multiple channels, you know, knowledge proof. So those are some of the key features our customers needed, right? And industry needed as well in order to build a comprehensive solution based on hyperledger fabric or based on blockchain asset technology. So of course, the key question always asks, right? These technologies seem to be only happening for the past two years, right? It started with Bitcoin back in 2008. But something relevant to industries, right? Only happened within the past two years. Is it real, right? I don't know how many of you, whether you ask yourself, is this real, right? Is this article you see on the newspaper, this solution is real? Does it really help to solve industry problems, right? And this is where with the past engagement, I'll say IBM helping our customers, right? In terms of building real and solid blockchain driven solution in various industries, right? With the technology of hyperledger fabric itself, it allows us to build different smart contracts, right? To actually model different business processes and based on the same technology which is called hyperledger fabric. And this is just some of the customers that we have, right? Of course, various industries. Some of the logo, you may see it, you may get familiar with it. Some of the logo, you may not even heard about it, right? There are a few areas that I would say distinct, right? I would say that that is actually the key focus of what IBM is heading into as well. So on the area example in trade finance, right? So whereby collective of banks set up a internet work between banks in order to allow trade financing facility to be provided to the... and imported to the exporter in a much more easy and streamlined way. We also work with customers such as Walmart, such as Nestle, right? In order to build and ensure the facility, right? Along the food supply chain. We also work with the customer in this region, right? Customers in Thailand, right? In order to build the latter guarantees so-called processes of. So those are some of the... examples whereby how hyperledger therapy, right, get to be implemented and run as a production solution on the market itself. Of course, this logo looks nice, right? It seems like those are assisting IBM customers as well. But that is not the main point for today's session, right? The main point is how we derive these problem statements, these business use case. Hyperledger therapy can be the technology to address those challenges itself. Throughout the engagement with the customers, right? We learn it ourselves, we learn it from our customers. We start to identify a few key major characteristics, right? Which is needed by our customers. And this is important in order to roll out hyperledger therapy projects successfully, right? So as you put it into the sixth category, sixth category, right? Is there a network exist in these problem statements, in these particular challenges, right? Is it only you? Is it only a set of people? Or you need to work with upstream, downstream, with different set of participants within the industry in order to deliver something, in order to execute certain processes, right? So this is where the business network comes into picture. Second, where are those information stored? In a CIM solution, right? Is it in ERPs? Is it in one particular portal? And some of it, you may be surprised, it's written in paper, right? Especially in supply chain. So how all this information can be shared in order to streamline the business process. And who will consume those information? Multiple writers, right? Who will contribute the data? Who is going to use the data for certain activities, right? Multiple writers should be involved in that process itself. And is that a trust? Do I believe the information you share to me? Can I use it immediately for the execution? Is there a level of trust between you and me for me to proceed with the business transaction? And process. Is it a process to govern it? Or it's just an ad hoc activity we are dealing with. And lastly, right? Rules, right? What are the execution rules? What are the logic we need to, so-called, depends on it in order to execute with this particular process? For example, do I pay you after you ship the delivery to me? Do I pay based on this interest rate have been agreed upon? So those are the different type of business process involved in the industry itself. Whether you are in financial, whether you are in supply chain, whether you are in government agency or even healthcare industry, those things apply. So this sounds like a lot of criteria in order to, so-called, make it solution real for the actual usage itself. So let's go through a simple case, right? So whereby we build a solution surrounding it. It's called Threadlands. I'm not sure how many have heard about it. But I believe you've always seen a lot of big container shipping around the world, right? And majority of the goods we are having today, including your shirts, your jeans, the food you are eating, right? It's actually shipped in container, right? So how much time it takes, right? In order to ship the container from the exporter to importer. So this is where our collaboration with our customers, right? Start to actually highlight something very important. The cost of processing the documents itself is higher than the shipping cost, right? So especially with nowadays, the fuel prices is going down. There are a lot of more and more manpower is needed. The information engine is needed in order to process the paperwork. It becomes not scalable in terms of business process perspective, right? So whereby blockchain can be a tendency to bring different people in the logistics supply chain ecosystem together and have the common rules set, right? To allow the process to be streamlined to move forward. And don't forget, each parties have their systems in order to keep track in terms of logistics, supply change, warehouse. So blockchain able to help to aggregate those information. Of course, blockchain sounds as an interesting technology, right? Everyone wants to explore the potential of it to maximize it. But of course, it should have a certain principle and guideline to move forward as well, right? So this is where the entry point becomes something important. With the solution we are building, why we try to address business differentiation or is for the larger benefit of communities or this is more towards to create a new market, right? And each of the use case will be tailored and slightly being positioned and build it according to the entry point to address the business challenge, right? And this will be basically some sort of guiding principle, right? So that we can build the solution that address the needs by the user, by the industries. And this is just, I would say, the starting point, right? You may realize that, oh, you have IBMs, right? You have so many projects, right? So I heard about someone building this network. I heard about another so-called vendor building the networks as well. It seems like a pocket of network here, a pocket of network over here, and somebody building something. Information in a certain way still in silo, but in bigger silo, right? Rather than interconnect the network. So the next evolution of, or the next phase of blockchain while we're looking at is building networks of networks. Networks of networks, right? We start to realize that each of the networks serve a particular purpose, right? They need to streamline supply chain process. They need to streamline government process itself. They may need to streamline KYC process for the banks. But at a certain point within the process itself, they may need to interact with another network. This is where the concept of network of a network come into picture. At a certain point of execution, can we bring this set of information in immutable way, right? Move to the next so-called network itself. So you may start to see some of the news happening on the ground whereby we talk about interledger protocol, right? Collaboration between Ethereum and hyperledger projects, right? In order to allow this kind of information sharing between two different networks to be happened, right? That is still in, I would say, the project status itself. But the industry and the vendors are moving to the same direction, right? In order to solve the problem, right? Of course, from IBM perspective, right? Open source is something IBM has been doing for past, I would say, 25 years, starting from Linux foundations to Java to Eclipse, right? And even today for hyperledger fabric. That work is not going to stop, right? At any point in time, IBM have more than hundreds and thousands of developers have been codes into a blockchain community as well, right? And Fabric is just one of the projects IBM is contributing. And of course, we want to make this easy for our user, right? Especially for those people who are sitting in this room. Oh, I want to test it out. I want to start something, right? Can I test it out with hyperledger fabric? Can I leverage it on the new features within Fabric 1.4 in order to execute certain activity? Yes, please feel free to visit to club.ibm.com. So we can offer you some beta, so-called services for you to test it out. But eventually the messaging, right? Is to allow hyperledger fabrics to offer as a service to our customers, right? To you guys to continue to achieve build interesting solution on top of it, right? So that is, I would say, at least the commitment from IBM to allow the technology adoption to be easier, right? For everyone in the industry to move forward, right? So of course, so far what you see is still the slides, right? How blockchain application may eventually look like, right? So I want to actually give you a simple example of how the solution actually looks like. Oops, let me actually mirror it. So this is one of the examples of the solutions that we have is called IBM Food Trust, right? I'm sure quite many of you never heard about it. Imagine today you have a packaging of mango in front of you. How many of you whether wonder where is this item coming from? Is it from Philippines? Is it from United States? Is it from Europe or Vietnam? And in between, who has actually processed it? Who has actually cleaned up, right? Today actually implementing sustainable plantations, right? Today has been certified with their factory to process it with the cleanest certifications. So those are what we call food supply chain, right? Whereby in the US itself, last year alone, there are people falsely or actually passed away because of E. coli bacteria, which exist in the veggie itself. So those are the food supply chain reality, right? People have confidence with the retail store, believing what they are getting from the store is actually so-called safe to be consumed. But in reality itself, the item are actually separated in every place in the world. And it may change hands in between with multiple suppliers, with multiple distributors, with multiple logistics provider to ship it from the farm all the way to the retail shop, right? So this solution will tend to actually help us to keep track in terms of the activities, right? As well as who is involved in that supply chain for the visibility. And this is where I have a product, basically broccoli carrot to be tracked, right? And I will actually punch in, okay, this particular padlock or this particular box during the shipment that I want to track the origin from. So this is where I plug in the log number, search for it, all right? I want to use it for the selections. Then I run the trace. So this solution has been connected to various food supply chain provider, right? All the way to the farmers, right? To the food processors, to people like Walmart as a retailers, to logistics parties, so that each of them still continue to use their system to do data entry, to do management. But piece of information based on GS1 standard will be actually sent to blockchain. And each of them will actually keep track, a copy of ledger for the transaction itself. And this is where we start to actually build the food supply chain for the first time. So I know exactly this box of the registry to the retail shop itself. It's actually getting from which particular distributor, right? It has been processed by which particular manufacturer. It has been so-called keep in which particular warehouse and all the way to the farmer, right? And always remember, the item you are getting may not source just from one particular farm, right? Because the producer always source from multiple farms, collect it, process it before it actually redistribute again to the different retail shop, right? So this is the visibility that we want, right? To ensure the food quality we are getting, to ensure the food safety we are getting. You don't want to get into situations whereby, oh, the item required to be recalled due to bacterial infection, due to expiry date, and you may not know which particular item still being circulating around the market itself. So that is quite generous, right? Put it this way. And today, with the effort based on what we have studied with Walmart, with all this provided itself, it's easily took more than one week to discover any item to trace back all the way to the suppliers, right? Which is very alarming, right? Just imagine if you have someone you close with, admitted to the hospital and they don't know where is the source of the infection happen, right? So that is something that IBM, working with the players in the industry, we try to actually build a solution to address, right? Of course, this wouldn't be happening without the contribution of open source, right? Without the so-called industry player committing to the open source technology as well, right? So we realise this is something beneficial to everyone and this is where the direction of IBM to continue support open source technology. All right? I think we have three minutes. I'm open for questions if there is... Oh! So, yeah, a bit higher. Just curiously, I think it's really fun and interesting to use the blockchain technology to trace the source and all of the different pit stops and checks that have just happened through your food supply chain. Yeah. But we're placing a huge amount of trust on people who are handling these goods from one place to another and I wonder how is it any different from just having a manifest and a list and maybe a table and a database? Yeah. So thanks for the question, right? So it's important, right? It's something that we realise, right? Can we come up with a solution whereby all the information can be just using express sheet or even use comprehensive database to do? But what we realise there is that has been done and it's not practical, right? Because for those suppliers, right, a lot of, I would say, the parties within their so-called industry chain, value chain itself, we call it, they are not... they are actually reluctant to pass their information to other people to manage, right? So that becomes a key concern, right? Each one of them have their own security policies and the way they want to manage the data, right? Because if they pass that responsibility to you, then the question to you is, is it you taking the risk of managing my data, right? So this is where the trust issue comes into problem. The trust on the item itself and also the trust you can help me to protect my data, right? We saw two reactions. One is I reluctant to pass it to you, right? MBC provider reluctant to take that responsibility, right? They'll say, sorry, I'm just a technology provider. Your information is your information, right? Then this will become a chicken eggs scenario. So blockchain, in that case, nicely fit to address that kind of concern while they still have the control of what to be shared. It lets the participants have a greater amount of trust in each other, but it doesn't necessarily... Then you don't need blockchain. Do I know that they actually did this while we don't know? Yeah, they had a lot of trust in you to need blockchain. This is a general supply chain issue. The good news is we can take another question. In the meantime, does anybody in the room have a mini-DP to HDMI adapter? I thought I had one, but apparently don't. Mini-DP or Thunderbolt to HDMI? And while anyone's asking that question, any more questions? Fabulous. I wanted to ask about how the blockchain development is going on in the future. I think last year was like the height of the blockchain craze, and now the hype is starting to die down with the values of the Bitcoin and so on, not growing anymore. So how do you see the future there? I see the futures whereby... There's a certain trend whereby it's so-called cool-down in the industries, but I also start to realise that the industry is taking more serious by looking at what it tends to solve. We are right, as in last year itself, we see a lot of so-called POC kind of proof technologies, right? Whether it works in supply chain, whether it works in healthcare. But we always ask the user, ask back the customers, what actually you tend to solve? Does the technology help you to solve the so-called challenge itself? Right, whereby technology is convincing to actually solve it. Now this year, we start to see maturity going up whereby people start to realise that this is not just a piece of technology I can implement myself. We need the network. We need to solve real problem statements. This is where we do see cooling now, but at the same time, we do see user seriousness into getting something into production grid start to pick up at the same time. So for me, it's a good thing. I believe this happened not only to blockchain, it happened to any other technologies as well. Okay, we have one. Thank you very much. I'm enjoying seeing blockchain becoming reasonable rather than crazy hyped, so a round of applause, please.